Carrefour : The calm spell can be taken advantage of to put on new positions

After several weeks of range-bound movement, shares in Carrefour could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.Investors have an opportunity to buy the stock and target the € 17.

In a short-term perspective, the company has interesting fundamentals.

Strengths

The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 14.58 EUR in weekly data.

Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 15.11 support.

The company shows low valuation levels, with an enterprise value at 0.21 times its sales.

The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Weaknesses

As estimated by analysts, this group is among those businesses with the lowest growth prospects.

The company has insufficient levels of profitability.

Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

The company's earnings releases usually do not meet expectations.

The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

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